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You need IOS which support Autonomus AP mode:

k9w7 - autonomous (or "site survey") IOS
k9w8 - full lightweight IOS
rcvk9w8 - lightweight recovery image

So any image with k9w7, for example c1240-k9w8-mx.124-25e.JAP4. If it’s k9w8, you need controller for the configuration.

Step 1: Delete existing lightweight IOS

delete /recursive /force flash:c1240-k9w8-mx.124-25e.JAP4

Step 2: Power off the AP, press mode button for a while. The AP will fallback recovery mode with IP address in 10.0.0.0/24 range.

Step 3: Connect the AP LAN with you laptop/PC and set IP 10.0.0.2/24. Run tftp server.

Step 4: Type the following command to initialize the and upload new IOS.

ap: tftp_init
ap: ether_init
ap: flash_init

ap: tar -xtract tftp://10.0.0.2/c1240-k9w7-tar.124-25d.JA2.tar flash:

ap: set

BOOT=flash:/c1240-k9w7-tar.124-25d.JA2

ap: reset

I am using WPA for security, bellow link for full configuration:

http://pastebin.com/ryDeYdub

I found following video very help, specially if want to know more about the recovery process.